In mid-May 2012, the popular social network Facebook took another step to increase its attractiveness to potential investors. The company's shares appeared on the American stock exchange Nasdaq during the initial public offering. Such a financial transaction, called an IPO, is one of the most effective ways to attract investment. However, since the start of the IPO, market participants' expectations regarding Facebook shares have not been met.
Initially, the very fact of Facebook's participation in the initial public offering of shares meant that investors were quite positive about the effectiveness of the social network's economic strategy. But failures began on the first day of trading. The unjustifiably high demand for securities led to disruptions in the operation of the technical system of the exchange, which led to tangible financial losses for intermediary companies. There were significant delays in processing applications, which led to the filing of claims against Nasdaq.
Analysts came to the conclusion that the company's securities were valued inadequately at the time of the opening of trading, which affected the stock quotes. The fact is that the social network does not actually have real assets corresponding to the amount at which it was estimated by the organizers of the IPO. This makes it difficult to predict the dynamics of the company's performance indicators. The fall of the IPO was also affected by the fact of accusations of the company by a number of shareholders that the organizers of the initial public offering had hidden significant information from investors.
During the summer, Facebook shares continued their decline, having fallen in price since the start of trading by almost two times. The social network IPO started at $ 38, and in mid-August 2012 the price was less than $ 19 per share. Many investors are skeptical about the company's ability to win back such a significant decline in quotations in a short time.
Experts rightly consider Facebook's IPO to be one of the most unfortunate listing of the company over the past decade. Naturally, the founder of the social network, Mark Zuckerberg, also lost high positions in the ranking of the most successful people on the planet, dropping out of the list of superbillionaires. The actual failure of Facebook's IPO forced the owners of similar projects to reconsider the tactics and strategy of bringing their networks to the exchange.
